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HomeMy WebLinkAboutItem #31 - Discussion ItemRESOLUTION NO. A RESOLUTION DEFINING THE TERMS UNDER WHICH THE CITY WILL CONTINUE TO PROVIDE HOUSING BOND PROCEEDS TO METROPOLITAN DADE COUNTY FOR SITE ACQUISITION, RELO- CATION AND RELATED COSTS FOR THE PURPOSE OF IMPLEMENTING THE SCATTERED SITE PUBLIC HOUSING DEVELOPMENT PROGRAM AND DIRECTING THE CITY MANAGER TO ADVISE METROPOLITAN DADE COUNTY ACCORDINGLY. ALSO DIRECTING THE CITY MANAGER TO ENLIST THE SUPPORT OF DADE COUNTY'S CONGRESSIONAL DELEGATION IN PRESERVING THE PROGRAM'S FUNDING LEVEL. WHEREAS, the City of Miami through Resolution No. 80-343 authorized the use of $4,000,000 in general obliga- tion housing bond proceeds for the acquisition of develop- ment sites and to fund related site preparation costs for the development of approximately 266 public housing units awarded to the City by the U.S. Department of HUD, less federally funded reuse proceeds; and WHEREAS, Metropolitan Dade County has advised the City that land acquisition costs will exceed the $4,000,000 authorized by the City through Resolution 80-343 by approxi- mately $2,000,000 for a total acquisition expenditure of approximately $6,000,000; and WHEREAS, Metropolitan Dade County has provided assu- rances that legally binding contracts have been executed with the U.S. Department of. HUD for approximately 154 of the above public housing units and such contracts will be executed in the near future for the remaining units; and WHEREAS, despite these contracts, the Federal Govern- ment's current and proposed assisted housing budget reduc- tions may result in the U.S. Department of Housing and Urban Development's withdrawal of funding for the above projects, and WHEREAS, the City of Miami desires to proceed with the development of the above projects by assisting Dade County wiseu55i0r7 P82-306.1 AK Ark in the acquisition of the land necessary for their develop- ment; and WHEREAS, the City recognizes the importance to the development of the above and of the continuing financial commitment of the U.S. Department of Housing and Urban Development; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Commission hereby authorizes the use of disposition proceeds to be received from the U.S. Department of Housing and Urban Development for the subject housing projects, as necessary, to fund the acquisition funding shortfall necessary to realize the program develop- ment goal of approximately 266 dwelling units. Any portion of the reuse proceeds not necessary to complete acquisition activities will be returned to the bond fund account. Be it further resolved by the Commission of the City of Miami: Section 1. The City Manager is hereby directed to advise Metropolitan Dade County that, until such time as legally binding commitments are secured by the County for the Model City and Coconut Grove scattered site public housing projects, real property acquisition commitments should be ceased. Section 2. The City Manager is hereby directed to advise Metropolitan Dade County that the City of Miami will assume a maximum funding commitment not to exceed the $4,000,000 authorized through Resolution 80-343. Section 3. The City Manager is hereby directed to notify Dade County's Congressional Delegation of the City of Miami's concern over the potential loss of federal funding commitments for the projects and enlist its support in preserving the allocation. 2 14 82-306.1 41, PASSED AND ADOPTED this day of , 1982. MAURICE A. FERRE, Mayor ATTEST: RALPH G. ONGIE City Clerk PREPARED AND APPROVED BY: JOEL E. MAXWELL Assistant City Attorney APPROVED AS TO FORM AND CORRECTNESS: J. GEORGE F. VNOX, JR. City Attorney 3 082—cj06.1 nb,91 is Howard V. Gary March 17, 1982 City Manager Scattered Site Public Housing Program . Dena Spillman, Director Department of Community Development c•• _ = It is recommended that the City Commission approve a resolution defining the terms under which the ". City will continue to provide Housing Bond proceeds to Metropolitan Dade County for site acquisition, relocation, and related costs for the purpose of =" implementing the scattered site public housing w development program and directing the City Manager to advise Metropolitan Dade County accordingly. Also directing the City Manager to enlist the support of the Dade County congressional delegation in maintain- ing the Public Housing funding allocations previously authorized by the U.S. Department of HUD. M On May 8, 1980, by Resolution No. 80-343,the City'Commission authorized 54,000,000 in Housing bond proceeds to acquire development sites and fund related costs to enable Dade County to develop approximately 266 units of public housing in the City awarded by the U.S. Department of HUD through a special allocation. It was anticipated that a portion of these funds would be returned to the City by the U.S. Department of Housing and Urban Devel- opment at a later date through HUD's site cost reimbursement process. Over a period of several months, the availability and location of potential development sites was determined. Numerous meetings were held with various associations operating in the affected areas in order to secure neighborhood support for the program. These activities culminated with the City Commission's approval of the development of the "bonus" public housing units on a scattered sites basis in the Community Development Target Areas of Allapattah, Buena Vista, Coconut Grove, Little Havana, Model City and Wynwood. Dade County HUD recently advised that funds in the amount of approximately $6,000,000 will be required to acquire the sites proposed for acquisition in Allapattah, Buena Vista, Coconut Grove, Little Havana, Model City and Wynwood due to inflation and unanticipated high land values. 82-306•1 f1 r� Howard V. Gary Pane 2. March 17, 1982 Dade County HUD has requested authority to use a portion or all of the anticipated reuse proceeds to fund the $2,000,000 shortfall which exists between the $4,000,000 authorized by the City Commission for site ac- quisition and the revised land acquisition cost estimate. This, of course, represents a departure from the action taken by the Commission through Resolution No. 80-343 wherein the reuse proceeds were to be used to refund a portion of the $4,000,000 housing bond proceed capital outlay. In view of the fact that the Reagan Administration's budget proposes a tremendous reduction in future housing assistance allocations to locali- ties, it is staff's recommendation that the City Commission authorize Dade County to use the anticipated reuse proceeds to fund the land ac- quisition budget shortfall enabling the City to secure these housing units. It should be pointed out, however, that there is no firm guarantee that the housinq units in question will be built. Vhile Melvin Adams, Executive Director .of Dade County's Department of Housing and Urban Development,has assured us that the County has secured final legally binding contracts with the U.S. Department of HUD for 154 of the 266 units planned and has stated that such contracts will be forthcoming directly for the remainder, recent U.S. HUD policy memoranda indicate that no -public housing projects are safe from the Administration's budget axe until they are "in the ground." Until such time as legally binding commitments are secured by Dade County HUD for the 112 public housinq units planned in Model City and Coconut Grove, we have advised Mel Adams to discontinue land acquisition activities in these neighborhoods. He has stated that suspension of land acquisition activities will not impair Dade County HUD's ability to secure contracts from U.S. HUD for these projects and plans to secure site options instead. For the purpose of allowing this important housing program to move forward, staff recommends the following: Metropolitan Dade County should be formally advised to cease land acquisition activities in the Coconut Grove and Model City Target Areas until such time as legally binding commitments for these projects are secured with the exception that options for these properties may be secured. Metropolitan Dade County be authorized to utilize the approximately $2,000,000 in reuse proceeds from U.S. HUD to fund the estimated acquisition shortfall. 82-,306.1 or Howard V. Cary Paae 3. March 17, 1982 Metropolitan Dade County be formally advised that, under no circumstances will the City of Miami assume responsibility for land acquisition costs in excess of the $4,000,000 authorized in Resolution No. 80-343 plus any proceeds which become available. The Dade County congressional legislation be requested join the efforts of the City and Metropolitan Dade County in seeking to preserve the program from HUD budget cuts. Approval of the attached resolution is recommended. /mb Encl. ► 82-306. t